Starting from 2009, the term cryptocurrency has become very common as more people join blockchain technology. Satoshi Nakamoto was the first to release the pioneer blockchain, but it immediately became an eye-opener, helping industries to rethink and repurpose their ways of doing things. Nakamoto only wanted to help address the shortcomings of the banking system by offering a high-potential alternative, but the idea has now been built on to help with traceability in supply chains, strengthening contracts, and investing. Well, no matter the way you want to use blockchain technology, one of the main requirements is buying some native coins or cryptocurrencies.
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If you want to send funds, make payments on a blockchain network, or even take a crypto loan, the bottom line is that you need the native crypto coins. However, using cryptocurrencies comes with a number of risks, especially the danger of loss. In this post, we take a closer look at the best strategies that you can use to avoid losing your coins.
Select a Highly Secure Wallet
When you make the big decision to buy cryptos, the first step is selecting a wallet to store them. If you do not select a secure wallet, there is a high risk of losing the coins. So, here are some attributes of a good wallet that you can trust to keep your coins safe.
If you opt for hot wallets, which are considered the riskiest because they are always online, it is important to carry due diligence to avoid poorly designed ones. For example, you should ask major questions about the wallet, such as “has the wallet ever suffered a successful hacking attack?” and “what are the safety features used to keep clients’ coins safe?”
For crypto tournament platform who prefer desktop or software wallets, it is crucial to be extra careful with the coins. To avoid losing the coins in the event of a crash, you should make sure to have multiple backups in different locations. In the event of a computer crash, loss or damage, the alternative backup can help you to recover the coins.
Follow the Market Changes and Trends
Loss of crypto wallets is not the only way that can result in the loss of your coins. The market trends can also result in a huge loss of value. This can even be worse for people who have put a lot of money into crypto coins. Well, there are two main strategies that you can use to avoid losses related to market changes.
- Follow the market trends: This means that you will be able to identify the emerging trends on the market and act early enough to avoid a loss. If you realize that a specific coin is about to crash, the best course of action is selling right away and buying another high-potential one.
- Diversify your crypto portfolio: This is another highly effective method of reducing the losses that you can incur in the crypto world. This means that instead of using all your money to buy Bitcoins, only a section of it should be spent on BTC while the rest is used on, say, ETH and ADA. So, in the event that BTC crashes, the loss you can incur will be only on BTC.
Use the Coins to Make Passive Income
As we indicated earlier, the crypto market can be pretty volatile, but this is where you need to be innovative. Because the market is often impacted by forces that are way beyond your control, consider using the coins for passive income. For example, you can stake your proof of stake (POS) coins, such as ADA or ETH, to help with securing the respective blockchain and confirming transactions. In return, you are rewarded with some of the transaction charges paid by users on the network. Staking comes with a number of benefits:
- You do not sell your coins.
- If the price of the coins falls, the reward you get can help cover it.
- You get the pride of knowing that your coins are helping to secure the crypto network.
Work with Experts in Crypto Coins such as hi.com
If you are a new entrant in the world of cryptos, the information you have can help a great deal in reducing the risk of loss. This is why you should consider using platforms that are built to help new entrants wade through the risky niche. One of these is hi.com. You can use the platform for all your crypto needs and get assistance to keep your coins safe. Visit them now to learn how to safely send, save, earn, and convert cryptos.
Whether you are new or have been in the crypto world for some time, no effort should be spared to ensure your assets are safe. The tips we have listed above can get you started, but you need to stay vigilant because the threats facing the cryptos keep evolving. Particularly, you should ensure to work with experts to identify these emerging risks and avoid them.
